Which of the Following Is a Requirement for an Involuntary

question 45

Multiple Choice

Which of the following is a requirement for an involuntary Chapter 7 bankruptcy petition?

• A) The debtor must owe at least $150,000 in unsecured claims to the creditors who file.
• B) The debtor must have at least three creditors join in the petition if the debtor has 12 or more creditors. If the debtor has fewer than 12 creditors, any single creditor or group can file a petition.
• C) The creditors must have tried to help the debtor overcome the financial difficulties.
• D) The debtor must have a majority of the creditors file the petition.

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Definitions:

Cordless Screwdrivers

Electric screwdrivers that operate without a direct power supply connection, using rechargeable batteries instead.

U.S.GAAP

A set of accounting standards and principles provided by the Financial Accounting Standards Board (FASB) for companies in the United States, ensuring transparency and consistency in financial reporting.

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or rendering of services.

FIFO Firms

FIFO (First-In, First-Out) firms refer to businesses that use the FIFO accounting method to manage inventory, implying that the first items purchased are the first ones sold.